Why ESG Matters in Customer Experience: Building Brands for the Future
Customers today aren’t just buying products—they’re buying into values. A recent study revealed that 75% of consumers worldwide expect brands to contribute to their well-being and quality of life.
This means ESG (Environmental, Social, and Governance) isn’t just a corporate checklist—it’s a powerful driver of customer experience (CX). At BARE International, we see firsthand how ESG-forward brands build deeper trust and loyalty.
The ESG-CX Connection
What is ESG, and Why Does it Matter in CX?
- Environmental: Customers favor brands reducing waste and carbon footprints. Think reusable packaging and sustainable sourcing.
- Social: Inclusive and diverse customer service teams create stronger connections.
- Governance: Transparent business practices build trust—no one likes shady policies or fine print.
Real-World Impact: Companies recognized for their sustainability efforts, such as those honored at the SEAL Business Sustainability Awards, have seen a surge in customer loyalty. Brands that walk the talk get noticed.
How ESG Supercharges CX
- Loyal Customers, Stronger Brand: Customers stick with brands that stand for something. PepsiCo’s ESG initiatives have solidified its loyal customer base.
- Better Customer Satisfaction: People feel good spending money with brands that care. Studies show customers are more loyal to companies with strong ESG efforts.
- Future-Proofing the Business: ESG isn’t just good ethics—it’s smart strategy. Companies with strong sustainability policies adapt better to regulations and shifting consumer expectations.
How Brands Can Integrate ESG into CX
- Assess and Align: Conduct an ESG audit to identify gaps and opportunities in your customer experience strategy. Prioritize areas where sustainable changes can enhance brand perception and loyalty.
- Educate and Engage: Train employees to integrate ESG principles into everyday customer interactions. Ensure customer-facing teams understand and can communicate the company’s sustainability initiatives authentically.
- Innovate for Impact: Leverage technology to streamline sustainable practices—such as AI for reducing resource waste or digital tools to improve transparency in operations.
- Make It Measurable: Set clear KPIs to track progress in ESG-driven CX initiatives. Regularly evaluate customer sentiment and adjust strategies based on feedback and performance data.
Overcoming the Challenges
Myth: ESG Hurts the Bottom Line.
Reality check: Sustainable practices cut costs in the long run (think energy efficiency) and attract conscious consumers.
Communicating ESG Without the Hype
Customers can spot greenwashing a mile away. Authenticity and transparency—like showcasing progress, not just promises—win every time.
Final Thoughts
ESG is reshaping customer expectations, and the brands embracing it aren’t just doing good—they’re winning in CX. Whether it’s reducing environmental impact, fostering inclusivity, or building trust through transparency, these efforts matter.
At BARE International, we help businesses uncover key insights to understand the true nature of their customer experience—because real change starts with real data.
At BARE International, we pride ourselves on helping businesses decode customer behaviors. Whether it’s uncovering hidden trends or designing feedback loops for continuous improvement, our research empowers brands to stay ahead of the curve.
Reach out to us today to explore how our tailored research can take your CX strategy to new heights.
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